Tokenizing the Odyssey ecosystem
BUIDL an investment vehicle that aligns investors with builders to drive mass adoption for new, ownerless protocols, while mitigating the risk of startup failure, to make the digital commons economically viable. Discover next level venturing and enable the ecosystem to go beyond the VC-Startup model.
Winning Solution: Circularise & Milvum
Funding the digital commons
The solution enables not only institutional investors, but also corporates and governments to invest in protocols that are not owned by anyone, but that can be used by everyone.
Circularise and Milvum built a prototype that allows investors to simulate investments in open protocols. These simulations provide insights to the investor about the potential return on investment, and how the investor could help out the protocol with adoption in a truly transparent way. Simulations are based on a projected adoption curve, transaction parameters, protocol rules, and investment details. When the optimal protocol and investment rules are found for a proposed protocol, a smart contract is generated directly from the simulation to fund the builders. This smart contract pays out returns to the investor until his return cap is reached. This diminishes the incentive for the investor to get as much money as possible out of the protocol and rather creates the incentive to increase the adoption rate of the protocol: for the reason that this will guarantee an earlier payout of his investment. The solution uses machine learning on the adoption curves and transaction costs of current and future protocols to make the simulations as realistic as possible.
Together with the licensing structure and the legal arrangements that have been made by the team’s overarching foundation, investments can be made directly with approval of the AFM.
The next milestone is to link the governance contracts directly to the funded protocols, thereby giving fair voting power to all stakeholders involved in the development of the protocol.